Mr M Rafeeque Ahmed, President, Federation of Indian Export Orgaisations (FIEO) while commenting on the monetary policy review today stated that measures taken such as reduction in MSF rate by 75 basis points from 10.25 per cent to 9.5 per cent and at the same time an increase in the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points) from 7.25 per cent to 7.5 per cent and the reverse repo rate under the LAF stands adjusted to 6.5 per cent and the Bank Rate stands reduced to 9.5 per cent with immediate effect will reverse to some extent the liquidity tightening measures taken by RBI in mid –July.
President FIEO, however, lamented that the recommendation of FIEO to put exports in the priority sector which was accepted by the Padmanabhan Committee has not been conceded to by the RBI and using the same yardstick for exports as for domestic sector would only stifle exports and their valuable contribution to GDP of the country which is on a decadal low of around 4.4%.
FIEO Chief explained exports have started to look up after 20 months in july /august 2013 with consumer sentiment moving up in advanced markets/ Business indices being on the upbeat mode while the CSO showed domestic sectors with negative growth for infrastructure backed sectors such as cement/power/steel/construction / and others such as transport and utility vehicles/auto components etc.
President FIEO urged that priority sector lending for exports; single window for consortium lending ;exclusion of debt-equity ratio/current account ratio while appraising loans for exporting units; excluding pre-shipment credit from MBPF etc should be considered forthwith by RBI for boosting exports and to offset the domestic slump across sectors.
President FIEO, however, lamented that the recommendation of FIEO to put exports in the priority sector which was accepted by the Padmanabhan Committee has not been conceded to by the RBI and using the same yardstick for exports as for domestic sector would only stifle exports and their valuable contribution to GDP of the country which is on a decadal low of around 4.4%.
FIEO Chief explained exports have started to look up after 20 months in july /august 2013 with consumer sentiment moving up in advanced markets/ Business indices being on the upbeat mode while the CSO showed domestic sectors with negative growth for infrastructure backed sectors such as cement/power/steel/construction / and others such as transport and utility vehicles/auto components etc.
President FIEO urged that priority sector lending for exports; single window for consortium lending ;exclusion of debt-equity ratio/current account ratio while appraising loans for exporting units; excluding pre-shipment credit from MBPF etc should be considered forthwith by RBI for boosting exports and to offset the domestic slump across sectors.
